Income Statement Forecasting - How to do a 5 year forecast in excel
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- čas přidán 27. 07. 2024
- www.corporatefinanceacademy.com/
In Corporate Finance forecasting (also called planning or budgeting) is an important responsibility, especially in FP&A functions. Forecasting is tied to planning the strategic direction of a company and helps to lay out what the future looks like.
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www.corporatefinanceacademy.com/
0:00 Intro to forecasting
2:23 Revenue
4:39 Price
6:53 SG&A
9:00 Depreciation
10:55 R&D
11:47 Other Operating Expense
12:37 Interest Expense
13:45 Taxes
14:34 Summary and Conclusion
Thank you for such informative and knowledgeable series of video
Glad it was helpful! Be sure to subscribe!!
I have an assignment for school where I have the actuals/historical of 2019 and 2020, and a forecast for 2021 and 2022 has already been made (it's a brokerage company), but I have to add an investment to the forecast of 2022. The problem is, the only information I have about the investment is that the wages and salaries are 150.000 dollars, it's an investment in real-estate, there is no information about the property itself. Is there anyway I can forecast the revenues I will get from this investment by only knowing the 150k dollars of wages and salaries? I also have the wages and salaries of 2019 and 2020, I divided the actual wages and salaries of 2019 and 2020 with the revenues of both years. By doing this I know that the wages and salaries of 2019 and 2020 are around 30% of the total revenues. Since the new investment has wages and salaries of 150k, if I calculate the following: 150.000/30% = 500.000 revenues. I know it is a very long and maybe a bit confusing question, but is the way I calculated the revenue possible or is there no relation between the amount of wages and salaries and the revenue?
Hi, Thanks for the video you'd shared about Forecasting Income Statement & Budgeting. How could have an access in your Corporate Finance Academy for more useful finance & accounting reports. Thank you!
Do you still have the template? I am having trouble accessing the website
Hi, I checked your website, I cant find the excel formula sheet for this one/ Can you please guide?
Thank you for this contentful video.
I have a question. I did not get "Reduction challenge" term in calculating "Other Operating Expenses".
I would appreciate it, if you would explain it.
A “reduction challenge” would be a challenge by leadership to reduce these “other” expenses as a form of cost control
Could you also use a linear regression to forecast revenue?
Sure - that is definitely a model that can be used. You just want to make sure it makes sense for your business. Sometimes you have seasonal businesses or other changes in your business that make a linear regression no longer valid. Its good to be thinking go-forward not just based on history!
How do I get the template for this video?
I want to get the template link please
When you were showing those 5 year % assumptions for each line item, were those numbers based off of the revenue of the first 5 years and then you took the average of it?
depends on the account, often the 5 year assumptions were to understand for instance, over a 5 year period what was SG&A as a % of Revenue. Was there a specific line item you had a question on?
can you share on how to forecast balance sheet and cash flow statement as well?
will do soon!
Hi, Thanks for sharing this video about Forecasting Income Statement & Budgeting, its awesome and absolutely helpful. Have question, how could I have an access with your Corporate Finance Academy for more useful finance & accounting reports. I want to learn more about your finance & accounting business models and reporting template. Thank you!
just check out our site corporatefinanceacademy.com
Sir how to take macro economic factors percentages and club in this excel file to get forecast revenue percentage. What i mean is each economic factor gives one value and how to generalise a single revenue percentage from all these factors @corporate finance academy
Please i need templet very urgent because i can't access to your web site 🙏
how to make 5 year budget for micro finance in excel ?
I could not find the template on the website, could you please guide me, where can I download the template?
if you go to the website and sign-up in the box where it says something like "get the free template" once you sign-up you will get an email giving you a link... that link will let you download it!
Great!!!
Glad you liked it!
hi! can you kindly share excel for this? it would be very helpful
Sure - if you head to the link and add your email I can send!
hi please send a pdf of forecasted profit and loss and balance sheet please
hi can i ask for the excel file? I cant seem to find it in your website. Thank you in advance
website link is in the video description and on our "about" in youtube. corporatefinanceacademy.com
In revenue we don't have assumption what do we do to solve it?
You have to get to your best estimate... you could do something basic like a run rate from prior months, if you are big enough you could look at competitor growth rates, you could use the assumption that your company will grow in line with the industry, or GDP, etc... Bottom line - you come up with the best you can.
how do I find the future % revenue growth ? why you used 3 and 5
I just randomly selected these. In a real forecasting scenario you would have a more scientific approach. You would probably get to those %s by doing either a top-down or bottoms-up model.
Hi, can i get the template for the income sheet forecasting?
head to our homepage and you will see a spot to enter your email. Once you do that you will be emailed a link where you can download the template!
Hi this was very useful. Could you kindly share the excel please. It would be very helpful.
Thank you
Hi! If you go to the website you can download from there!
@@CorporateFinanceAcademy Hi. This is indeed very helpful! Where exactly on the website can this excel be located? And also, are the formulas attached in excel? thank you in advance!
@@user-td4li6gg2u yes - go to our website at corporatefinanceacademy.com and you will see on the homepage a place to enter your e-mail. When you do that you will automatically receive an email with a link to download the template!
@@CorporateFinanceAcademy got it! Thank you guys for your help and effort! Have a great day tomorrow!✌🏼
Thanks a lot pls how do I get the link
On our homepage enter your email where it says to sign up for the free template!
Can you share the spreadsheet. I have subscribed to emails.
It is automatically e-mailed if you sign up to the newsletter. If you didn't get it, feel free to reach out and I'll send it to you!
Hi, I sent you my email, can you forward the excel templates for all the financial statements forecasting. Thank you
if you go to the website and put in your e-mail address you will receive a link to the template!
Hello! Can I ask for the copy of the excel file? I have already subscribed but no file was sent
Kyla - on the home page there is a place to sign up to get the free template. Once you sign up, you get an email which has a link in it. If you click that link it will automatically download. We have many of these downloaded every day so I’m confident it is working! Check the email again for the link or perhaps make sure you signed up on the place that offers the free template!
@@CorporateFinanceAcademy Oh, i've found it! Thank you so much for replying!
@@kylaaguilar3063 you're welcome!
cant find the template, any help?
if you go to our home page it is in the middle of the page - you have to put your email in then it gets sent to you!
How to download this?
on our website! sign up for free template download!
Done thanks....
You created the assumption?
Sorry, can you clarify your question?
@@CorporateFinanceAcademy
Well i guess what @ user meant is were those assumptions hypothetical figures
@@benjaminabraham3506 yes - created the prior year data and a few of the other assumptions where you can't derive from prior years.
Thank you saviour ❤️🥺
please support us with Excel sheet has been used in the vidio
You can find out on website!
Hi, I sent you my email, can you forward the excel templates for all the financial statements forecasting. Thank you.
You should have received! Let me know if you didn't!